Lean Strategy Deployment - Quick Overview
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The document provides a comprehensive overview of lean strategy deployment, outlining common pitfalls leading to the failure of lean transformations, such as viewing lean merely as a toolkit rather than an integrated cultural system. It emphasizes the importance of developing a continuous improvement culture and long-term philosophy within organizations, using Toyota's practices as a model for success. Assessments and structured roadmaps are proposed to identify gaps, develop people at all levels, and foster an environment that encourages problem-solving and innovation.
Lean Strategy Deployment - Quick Overview
- 1. LEAN STRATEGY DEPLOYMENT OVERVIEW 1 ALFRA Consulting | Developing Partners
- 2. Lean Thinking Waste within the system (high inventory, defects, waiting & more… ) ALFRA Consulting | Developing Partners Lean Enterprise PRODUCT BUILT & SHIPPED CUSTOMER ORDER Short Lead Time Waste out of the System Traditional Business PRODUCT BUILT & SHIPPED CUSTOMER ORDER Very long Lead Time
- 3. Common Reasons of a Lean Transformation Failure Why companies don’t get to embed Lean in the Culture • View lean only as a technical “toolkit” not as an integrated ALFRA Consulting | Developing Partners system. • Lean is a “Program” with a start & end date. • Focused only on financial short-term results • Fail to develop people at all levels (another short term bet) • Inconsistent & Weak leadership direction, Leadership manage from the office (never seen on Gemba) • Lean is owned by a department, not for all the company • No strategy at all, isolated application of tools around the company and processes!!
- 4. Kanban. 5S Andon Slogans ALFRA Consulting | Developing Partners The Iceberg Model SMED Supermarkets VISIBLE TOOLS & DEVICES PHILOSOPHY
- 5. Results as Lean Strategy Evolves Without Philosophy No strategy at all!! 98% of companies fail here!! With Philosophy Systems that enable the culture development I. Apply some Tools II. Management Led Lean III. Aligned Continuous Improvement ALFRA Consulting | Developing Partners Business Results from Lean Transformation Starting Maturity Maturity in Integrating Lean and Business Strategy
- 7. • After thirty years of experience with lean programs, originally modeled after the Toyota Production System, there are many victories to celebrate with stunning results, but also much disappointment. The victories typically come from individual projects which have “leaned out” processes, the disappointment comes from the failure to sustain the new lean processes that show so much promise. • Lean tools become enablers to developing people who can identify and solve problems finding innovative solutions to move the company ahead. • The lean office shifts from technical transformers to social and cultural enablers to managers at all levels, and shop floor associates, teaching and coaching them to find and eliminate waste. A few process improvers grows to an army of process improvers all over the company. • One of the first steps in moving from expert-driven lean tools to building a culture of continuous excellence is to understand the gaps between where you are and where you could be. ALFRA Consulting | Developing Partners
- 8. The assessment we have designed focuses holistically on what I call the 4P ALFRA Consulting | Developing Partners model: • Together the 4Ps made up a dynamic, adaptable organization. • This assessment, based on the holistic model, will reveal gaps between where you are and where you want to be. • We include specific recommendations, and, if desired, training to facilitate your journey. • The assessment is against a vision of an excellent learning enterprise. It requires senior management commitment who passionately believe in this vision. We can help crystallize this vision and the steps needed to get there. .
- 9. Assessment for the 4P’s 3 ALFRA Consulting | Developing Partners Plant Tour & Assessment Deployment Weaknesses & Strengths Analysis 1 2 Transformation Roadmap Systems Deployment Assessment Summary Phase 1 Descriptions 4 5 6
- 10. “Base management decisions on a long term philosophy, even at the expense of short term financial goals” Category description: Why is a Long-Term Philosophy the Foundation? Toyota is serious about long term thinking. The focus from the very top of the company is to add value to customers and society. This drives a long-term approach to building a learning organization, one that can adapt to changes in the environment and survive as a productive organization. Without this foundation, none of the investments Toyota makes in continuous improvement and learning would be possible. Evidence to assess for this category: Serve Society and Customers through exceptional products or services Contribute to the economic growth of the country and community in which it ALFRA Consulting | Developing Partners is located. Contribute to the stability and well being of team members Contribute to the overall growth of the company
- 11. “The right Process will Produce the Right Results” Category description: . Toyota is a process-oriented company. They have learned through experience what processes work, reaching toward the ideal of one piece flow. Flow is the key to achieving the best quality at the lowest cost with high safety and morale. At Toyota this process focus is built into the company’s DNA, and managers believe in their hearts that using the right process will lead to the results they desire. Problem Solving (Continuous Improvement & Learning) People & Partners (Respect, Challenge & Grow them Process (Eliminates Waste) ALFRA Consulting | Developing Partners Evidence to assess for this category: Philosophy (Long Term Thinking) How you Add value •Yamazumi Management •Visual Management and 5S so no problems are hidden •Standard Work •Quality at the source systems •Leveled workload •Continuous Flow Structures •Use pull systems to avoid overproduction •Use only reliable, thoroughly tested technology
- 12. Add Value to the organization by Developing Your People and Partners. Category description: 1. Create a strong, stable culture in which company values and beliefs are widely shared and lived out Evidence to assess for this category: Positive Energy for Change From People Leaders are seen as teachers. Getting people to go where they would not normally go. Getting people aligned to a common objective. Teamwork means solving problems across functions. Create platforms for teamwork. Problem Solving (Continuous Improvement & Learning) People & Partners (Respect, Challenge & Grow them Process (Eliminates Waste) Philosophy (Long Term Thinking) The Heart & Soul of the Toyota Way ALFRA Consulting | Developing Partners over a period of many years. 2. Use cross-functional teams to improve quality and productivity and enhance flow by solving difficult technical problems. Empowerment occurs when people use the company’s tools to improve the company. 3. Make an ongoing effort to teach individuals how to work together as teams toward common goals. Teamwork is something that has to be learned. 4. Culture cannot be copied, People are your only appreciating assets! 5. The Value of People is in their creativity, passion, and commitment to the business.
- 13. “Continuous Improvement and Learning “ Category description: • Solving root Problems Drives Organizational Learning. The highest level of the Toyota Way is organizational learning. Identifying root causes of problems and preventing them form occurring is the focus of Toyota’s continuous learning system. Tough analysis, reflection, and communication of lessons learned are central to improvement as is the discipline to standardize the best-known way. Evidence to assess for this category: • Maturity in Integrating Lean and Business Strategy • Standard methodology & tools • Cascading approach • Standard evaluation tool • Recognition of roles • Focus on drive & dedication • On-Job Development (OJD) emphasis • Eventual connection to HR systems • Local ownership of lean by team members and leaders • Clear evidence of lean thinking in work groups • Activity is continuous (team & individual focus) • Activity is aligned with business goals (hoshin kanri) Problem Solving (Continuous Improvement & Learning) People & Partners (Respect, Challenge & Grow them Process (Eliminates Waste) Philosophy (Long Term Thinking) The dynamic of the Toyota way ALFRA Consulting | Developing Partners
- 15. In this case the company name assessed is not revealed, let’s review the deliverables of the ToyotaWay Assessment: • Making first the analysis of the 4P’s and identifying the company strengths and weaknesses, we make the summary per category. • We create the strategic long term roadmap, establishing with systems will be ALFRA Consulting | Developing Partners deployed in every stage. • We develop a work plan for every phase, and explain how systems will help our people to live the company values. • We advise then of should be the work structure, It requires senior management commitment who passionately believe in this vision. .
- 16. Identified Strengths •Respect and reciprocity at all levels •Workers benefits are perceived above other companies of the region •+760 days without lost day accidents at site level •Talent development for critical position with junior positions •A wide variety of involvement, engagement & social responsibility programs •Strong Technical training and certifications for DL & IDL •Highly skilled management team •IT System that helps to collect data and information •Improvement events area driven constantly to reduce space, defects and costs. •Good Structure for Engineering and Maintenance areas •Corporate Support and Strategy •A Long term stable costumer portfolio •People care about their works and their results •Familiar and Comfortable work atmosphere at all company levels •Community care programs to involve and help with the company •Leaders and team members engaged •Costumer Satisfaction Metrics drives the measurement of the business ALFRA Consulting | Developing Partners PROBLEM SOLVING PEOPLE & PARTNERS PROCESS PHILOSOPHY •Wide variety of tools & methodologies (6 sigma, lean ) to improve processes •Kaizen program to drive daily small improvements
- 17. Identified Opportunities •Continuous Improvement approach is only responsibility from Lean Department •Lack of a scientific thinking to solve day to day regular problems •Lean is only understood at tools levels to improve process trough events •Mostly understanding the ”Know How” instead the “Know Why •Majority of continuous improvements efforts are only focused on ROI •Development of people depends on leaders will •Leaders don’t spend enough time to understand first hand the situation (gemba) •Recognition system is only based on money bonuses •People don’t feel involved in improvements and changes, communication is not always effective •There is a perception of Long distance between operators and top management •Performance review is focused on results instead of process •Its hard to visualize process flow, performance and countermeasures (lack of visual factories) •Operators are not treated like Doctors •Several Leaders don’t have a deep understanding of the operations •Functional Silos, some local KPI or accounted to who can´t affect directly to it •Poor frequency for daily management performance review •People don’t challenge status quo •There are hidden cost and implications that not everybody is aware of it •Site is not working at full capacity & can handle more costumers •Sometimes KPI’s and their influence are difficult to understand at all levels •High Turnover rate for temporal direct labor workers ALFRA Consulting | Developing Partners PROBLEM SOLVING PEOPLE & PARTNERS PROCESS PHILOSOPHY
- 18. Systems Deployment Roadmap Operational Excellence Assessment behavior based Coaching Kata at top and mid level Standard reporting systems across the site Lean Leadership Mid Level Coaching PROBLEM SOLVING PEOPLE & PARTNERS PROCESS ALFRA Consulting | Developing Partners Idea suggestion program based on lean Daily management practices Development Value StreamManagement Standard Work System 5S & Visual Management Problem Solving (PDCA & A3 Thinking) Internal Lean assessment Stage 1 Stage 2 Quality at the source Door to door pull systems Autonomous Maintenance Recognition & Communication On Job Development Leveled Manufacturing Mix Stage 3 Lean Metrics as KPI Aligned Policy Deployment at all levels Self managed teams Cross Training Between Deploy Practical OpEx Training Business Units Pull Systems between manufacturing processes Stage 4 Yamazumi Management Deploy SMED practices Material Management System Correct accountability of KPI that drives correct behaviors PHILOSOPHY Total Business Results from Lean Transformation Maturity in Integrating Lean and Business Strategy Polcy Deployment per bussiness unit Yokoten across all departments
- 19. Systems Deployment Phase 1 Daily management practices Deploy Practical OpEx Training Recognition & Communication Standard Work System Yamazumi Management •Poor frequency for daily management performance review •People don’t challenge status quo •Mostly understanding the ”Know How” instead the “KnowWhy” •Lean is only understood at tools levels to improve process trough events ALFRA Consulting | Developing Partners Toyota Way Principles Systems to be Deployed Company Weakness Values Creativity & Innovation Teamwork Flexibility Efficiency Trust & Commitment 5S & Visual Management Correct accountability of KPI that drives correct behaviors •Leaders don’t spent enough time to understand first hand the situation (gemba) •Recognition system is only based on money bonuses •Several Leaders don’t have a deep understanding of the operations •Perception of Long distance between operators and top management •Performance review is focused on results instead of process •Its hard to visualize process flow, performance and countermeasures (lack of visual factories) •Operators are not treated like Doctors •KPI’s and their Influence are difficult to understand at all levels. •Functional Silos Kaizen Genchi Genbutsu Nemawashi Grow leaders who live the philosophy Respect, develop and challenge your people Respect, challenge, and help your suppliers Create process “flow” to surface problems Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Use pull systems to avoid overproduction Standardize tasks for continuous improvement Use visual control so no problems are hidden Use only reliable, thoroughly tested technology Base management decisions on a long-term philosophy, even at the expense of short-term financial goals
- 20. Lean Systems Deployment Quick Examples ALFRA Consulting | Developing Partners
- 21. DEPLOYMENT OF PRACTICAL OPERATIONAL EXCELLENCE TRAINING For phase 1 recommend to provide training to the people at the plant in different operational excellence tools and concepts, if possible should be a mix of theoretical and practical development, measuring the effectiveness of the training with improvement ideas and events depending of the organizational level. Defining which tools and concepts must be taught to each level. •Direct Labor – Awareness Training: production workers should be trained in lean principles,7 wastes, value added, Yamazumi basics, and stability tools ( 5S, standard work, visual control), then in a future stages they must be trained in deep in another tools •Medium levels: should complete awareness training, lean tools & Value stream map. CEO and Sensei Discussion “But what if I train my people and then they up and leave,” a CEO once blurted out to a lean sensei. “What if you don’t and they stay,” answered the sensei. 21 •Leadership Levels: Should complete awareness training + lean leadership ALFRA Consulting | Developing Partners
- 22. ALFRA Consulting | Developing Partners The Doctor Approach • We should treat our Value Adding workers has doctors, the rest of us should be there to help them to succeed in their purpose (add value).
- 23. YAMAZUMI MANAGEMENT SYSTEM A Yamazumi (Japanese work that means to stack) is a powerful visual tool that creates awareness for the workers which portion of their cycle time activities are classified in: ALFRA Consulting | Developing Partners Value added (VA), Required non value added (BVA) Non value added/Waste (NVA) This will help to identify and eliminate wastes, improve required non value added, and focus only in performing value added activities, this will also provide visibility to balance the workloads according to take time and identify bottlenecks, this system aligned with standard work and visual management will drive the desired behavior where support departments treat operators like the nurses supports a doctor, providing tools so they can improve they work, enabling the ability to kaizen their own activities. Workstatio task classification Yamazumi Chart for a complete process
- 24. Considering the above and with the work of at least two years, this company could demonstrate significant progress in the creation of a sustainable continuous learning and improvement culture. The advance in the lean transformation should be measured with an assessment every time when moving to another deployment phase, the way to measure it should be by behaviors identified. The way this plan can be followed and be successful depends on the organization leadership; they must lead in a “hands on” approach the deployment of the systems and set the direction to engage employees. It is also advisable to start with an area that is considered as an area where the project can be controlled to deploy Lean Successfully It helps when planning any changes in the organization to think about which desired behavior you’re trying to achieve for the company employees. ALFRA Consulting | Developing Partners FINAL COMMENTS
- 25. Lessons Learned Today? • Write us, and share your thoughts with us, how could we improve this presentation? ALFRA Consulting | Developing Partners
- 26. Contact Information contacto@alfraconsulting.com www.alfraconsulting.com Social Media: /company/alfra-consulting /alfraconsulting /alfraconsulting www.alfraconsulting.com ALFRA Consulting | Developing Partners